Pensions Bill

The amendment covers the issues of individual conversion on transfer. Noble Lords will be aware that the restrictions associated with GMPs mean that it can be difficult for a member to transfer his rights to a new scheme of his choice; for example, when starting work with a new employer. New Section 24F(3) provides a facility for a scheme to adjust a member’s guaranteed cash equivalent to a transfer value, with his consent, to remove the GMP and avoid these problems. That can apply even though the scheme is not undergoing GMP conversion for its membership generally. This is intended to be an easement providing greater flexibility and choice for individuals. The amendment would deem a GMP conversion to have taken place where the provision under new Section 24F(3) is used. We believe that this is already implicit within the draft legislation. I hope that that reassurance will convince the noble Baroness that the amendment is therefore unnecessary. We believe that proper reading of the legislation would say that that is inevitably the position.